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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: jamesbond007 on January 21, 2020, 10:10:16 AM

Title: Citibank closed by credit card due to lack of activity.
Post by: jamesbond007 on January 21, 2020, 10:10:16 AM
Hi folks,
So Citibank closed my Mastercard that I've had since 2007 (My 2nd oldest) because I haven't used this card in 2 years. I guess it is a good thing that I am not bothered about credit but I am worried if this impacts my credit. How much of a hit this would cause? I don't carry any balance on my credit cards. I am worried because I am planning to buy a house and want to make sure there is no drastic impact on my report.

Title: Re: Citibank closed by credit card due to lack of activity.
Post by: BECABECA on January 21, 2020, 10:31:14 AM
It depends. If you are already above 800 and you have high credit limits on the other cards then it probably doesn’t affect you much. You can sign up for Credit Karma for free and check your scores. It’ll show you what factors are weighing down your credit rating, and what factors you have going for you. If you called your other credit cards issuers and asked them to raise your credit limit (based on your years of paying on time, without doing a pull to your credit) then you probably wouldn’t see any difference in your score with this card getting canceled. Or, you might see if Citibank would reinstate your existing card with all its history if you called them up and said you were going to start using it again.

If you do have a drastic drop on your credit rating, you could always get a family member or friend who has really good credit and a card with 15+ yrs of history to put you on temporarily as an authorized user for a couple months while you shop for a mortgage interest rate. Or you could always purchase that from a stranger on one of the resellers of tradelines.
Title: Re: Citibank closed by credit card due to lack of activity.
Post by: MyAlterEgoIsTaller on January 21, 2020, 01:18:03 PM
Citibank did the same thing to me a few months ago, and it seems to have had no impact on my credit score, which was in the 800s and has increased by 2 un-dramatic points since.
Right before my Citi card was closed I had just opened another credit card (to collect the bonus), and I was concerned that maybe one thing had something to do with the other, but folks here assured me that timing was just a coincidence.  Opening that other card did mean that my total credit limits stayed right about the same, and my overall credit utilization is less than 1%, and my credit history is older than it sounds like yours might be, so any of those things might make our experiences a little different.